FPI selloff bleeds indices on D-Avenue, additionally erodes belongings of worldwide funds

The drop in Indian equities since October 1, 2024, has eroded the fairness belongings underneath custody (AUC) of most international funds in India, with a mean decline of 20%, based on NSDL information.

Funds based mostly in Mauritius and Canada have been the toughest hit, witnessing a pointy 25% drop in AUC. In distinction, Norway-based funds reported the smallest decline, with their AUC falling by 14%.

In the meantime, funds from different key funding hubs—together with america, Singapore, Luxembourg, Eire, the UK, and Mauritius—every noticed their AUC shrink by round 20%.

International portfolio traders (FPIs) have dumped over Rs 3 lakh crore ($36 billion) of Indian shares since October 1, dragging the benchmark Nifty 50 down 11%.

The selloff has hit smaller shares more durable, with the Nifty Midcap 150 sliding 18% and the Nifty Smallcap 150 shedding 22%.

As of February, overseas portfolio traders’ AUC in India had dropped to Rs 62.3 lakh crore ($750 billion), down 20% from Rs 77.9 lakh crore in September 2024. The ratio of India’s market capitalisation to FPIs’ AUC fell to fifteen.74%, persevering with a gradual decline since December 2020 amid rising inflows from home traders.